Toronto Grace is/was a publicly funded facility (operated by the Salvation Army).
I would be irked to see a windfall to that agency (for purposes undetermined) when there are pressing public needs. That is not a slag on the Sally Ann, btw, I would express the same if I though a large public site was being treated as a cash cow by the City while failing to meet important public needs.
I hasten to add I think renovating the Grace is an awful waste of money for a dated facility which in its current configuration makes no sense.
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There is a pressing need for more long-term care in Toronto; the wait lists are reaching 2 years + for basic accommodation in 'ordinary' long-term care homes.
4+ years for high-demand facilities.
While Bloor/Church wouldn't be my first site choice; there really aren't that many large-scale sights left near the core, that are readily accessible by transit.
One day, there will be, in areas like the Portlands; but for now, given that the site is contiguous to Toronto Grace and the Hayden properties, it seems like a pretty good fit.
A 500-bed facility + palliative care could easily occupy 20 or more floors, plus retail, and maybe medical research combined on-site, could make it larger still.
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If it is sold for condos/offices, it would make more sense the level the Grace, consolidate the site for max. value; and take the proceeds to build a new long-term care and palliative site elsewhere in the downtown.
There was discussion at one point, of one of the late phases of Regent Park containing a long-term care site; and that could be an alternative, as could any some the less than 'best and highest' use land at the periphery of the West Don Lands.